California’s controversial cap-and-trade program may link with a similar program in Australia, according to a new report this week.

As reported by KCET-TV, the California Air Resources Board signed a memorandum of understanding with the Australian Clean Energy Regulator, that country’s agency responsible for climate change, calling for collaboration on cap-and-trade. The memo also left open the door for the two systems to eventually trade carbon credits.

It would be the state’s second partnership with a foreign carbon trading program if the Air Resources Board eventually worked with Australia. California already has an agreement to merge its cap-and-trade market with another program in Quebec this January.

The California program however does potentially face a few roadblocks. Two lawsuits against the state’s cap-and-trade system will get an initial hearing next month in Sacramento Superior Court.

A coalition of businesses led by Woodland-based Morning Star Packing Company have filed suit, while the California Chamber of Commerce has also sued. The business groups say the cap-and-trade system is an unconstitutional tax and should be eliminated. Those cases will be heard at the same time on Aug. 28.